Green Ammonia - Global Market Outlook (2021 - 2028)
According to Stratistics MRC, the Global Green Ammonia Market is accounted for $16.00 million in 2021 and is expected to reach $274.59 million by 2028 growing at a CAGR of 50.1% during the forecast period. Green ammonia refers to ammonia which is produced through a completely renewable and carbon-free process. To achieve net-zero emission targets, the amount of carbon dioxide generated during the production process should be minimized. Currently, the reduction of carbon emission is achieved by utilizing low-carbon hydrogen.
Market Dynamics:
Driver:
Growing demand for long-term storage of renewable energy
The renewable energy generation continues to outpace fossil fuel power generation in the overall capacity addition. By the end of 2020, global renewable capacity reached 2.79 terawatts (TW), which was 10.3% higher than the previous year. According to the International Renewable Energy Agency (IRENA), solar and wind are high potential renewable energy sources and are likely to dominate the renewable power sector in the coming years. Solar and wind energy have been growing relatively faster than other renewable energy sources, mainly due to investments in these areas and falling power generation costs. Hence, increasing renewable energy generation and a subsequent rise in the demand for storage will drive the growth of the market.
Restraint:
High initial capital requirements
The capital-intensive nature of green ammonia plants is a major hindrance to the market's advancement. Green ammonia costs 1.5 times higher than natural gas-based ammonia plants. Major operational costs in ammonia production are associated with natural gas or coal, which accounts for 75% of the plant’s operating costs. Unless the cost of renewable power and electrolyzers decrease further, it is not feasible for general ammonia producers to switch from traditional ammonia production to green ammonia production, thus, hampering the growth of the green ammonia market.
Opportunity:
The shipping industry grows at a huge rate which is mainly due to the high consumption of diesel and high sulfur fuel for ships. The main type of bunker oil for ships is heavy fuel oil, derived as a residue from crude oil distillation. Such high sulfur content oil, when combusted in the ship engine, releases harmful SOx in the atmosphere. However, the marine industry is undergoing a transformation. The maritime industry is obliged to cut down its emissions by using cleaner energy sources. The International Maritime Organization (IMO) 2020 regulations has reduced the limit of sulfur in transportation oil used on board ships operating outside designated emission control areas to 0.5% m/m (mass by mass). This will result in the transition towards higher quality marine fuels, which will bring opportunities in the green ammonia market.
Threat:
Low awareness
One of the main threats associated with green ammonia is low awareness among chemical producers. The major chemical producers in China, Japan, and Russia are still using natural gas steam methanation technology for producing ammonia. Major ammonia producing companies include EuroChem (Russia), CF Industries (US), TogliattiAzot (Russia), PetroChina Group (China), and Rashtriya Chemicals and Fertilizers Ltd. (India). All these companies are using the steam methane reforming Haber-Bosh process for producing ammonia. However, the market for green ammonia is expected to gain traction during the forecast period with growing awareness about electrolysis technology and the reduction in the cost of renewable power generation.
The alkaline water electrolysis (AWE) segment is expected to be the largest during the forecast period
The alkaline water electrolysis (AWE) segment is estimated to have a lucrative growth owing to the low capital cost of alkaline water electrolysis systems. Alkaline water electrolysis (AWE) is a traditional, robust, and the most established technology for electrolysis. AWE is a mature and safe technology and is currently used in many industrial applications. One of the main advantages of using AWE over other technologies is its ability to scale-up to megawatt range production capacities. Nowadays, several companies are producing alkaline electrolysers for the production of hydrogen of electrolytic grade.
The power generation segment is expected to have the highest CAGR during the forecast period
The power generation segment is anticipated to witness the fastest CAGR growth during the forecast period owing to the high demand of energy requirements for various end use industries. With green ammonia production, renewable energy can be stored and reused for power generation at consumption points. This will make the generation of renewable energy more efficient and usable for the long term.
Region with highest share:
Europe is projected to hold the largest market share during the forecast period. An increasing number of fuel cell projects and government initiatives for the deployment of fuel cells in the residential and commercial sectors are likely to provide opportunities for the growth of the green ammonia market in the region. Furthermore, the surging adoption of electric vehicles is also expected to boost the fuel cells market in this region, which, in turn, would boost the market for green ammonia. The European market is also increasing due to the favourable government initiatives and policies that urge the need of production of green hydrogen for achieving its energy transition goals and maintaining energy-intensive industries to improve the business climate, which has propelled the demand for green ammonia. The Netherlands is the fastest-growing country for the global green ammonia market, owing to the launch of the national hydrogen program as per the Climate Agreement, which aims to achieve 4GW of installed electrolyzer capacity by 2030.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period. For the green ammonia production process, the largest chemical companies in China, Japan, and Russia continue to use natural gas steam methanation technology. With increased knowledge of electrolysis technology and lower costs of renewable energy generation, the market for green ammonia is likely to rise throughout the forecast period.
Key players in the market
Some of the key players profiled in the Green Ammonia Market include Enapter GmbH, Green Hydrogen Systems, Haldor Topsoe A/S, Hiringa Energy Ltd., Hydrogenics (Cummins Inc.), ITM Power Plc, Man Energy Solutions SE, MCPHY Energy SAS, Nel Hydrogen AS, Proton Ventures BV, Queensland Nitrates Pty Ltd., Siemens AG, Samsung Heavy Industries, Uniper SE, and Yara International ASA.
Key Developments:
In November 2021, Green Fuel and Haldor Topsoe signed a Memorandum of Understanding (MOU) to partner for the identification of efficient and scalable technologies for the production of green ammonia in Iceland.
In August 2021, Norwegian companies Yara International ASA, Aker Clean Hydrogen, and Statkraft AS launched a new firm, HEGRA, to electrify and decarbonize the ammonia plant at Heroya and create a new industry in Norway.
In January 2020, Malaysia’s MISC Berhad, South Korea’s Samsung Heavy Industries, the UK’s Lloyd’s Register, and Germany’s MAN Energy Solutions announced a project to produce an ammonia-fueled tanker in the next three to four years.
Technologies Covered:
Proton Exchange Membrane (PEM)
Solid Oxide Electrolysis (SOE)
Alkaline Water Electrolysis (AWE)
Production Routes Covered:
Distributed Direct Ammonia Production
Steam Methane Reforming Haber-Bosch Synthesis (SMR-HB)
Electric Distributed Haber-Bosch Process (E-HB)
Purity Types Covered:
Low Purity
Exceptional Purity
Applications Covered:
Hydrogen Carrier
Energy Storage
Zero-Carbon Fuel
Fertilizer
Other Applications
End Users Covered:
Transportation
Industrial Feedstock
Power Generation
Regions Covered:
North America
US
Canada
Mexico
Europe
Germany
UK
Italy
France
Spain
Rest of Europe
Asia Pacific
Japan
China
India
Australia
New Zealand
South Korea
Rest of Asia Pacific
South America
Argentina
Brazil
Chile
Rest of South America
Middle East & Africa
Saudi Arabia
UAE
Qatar
South Africa
Rest of Middle East & Africa
What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements
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